A hands-on options curriculum covering real trading concepts. Read the lessons, work through examples, and test your knowledge.
OVERALL ACADEMY PROGRESS
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Lesson 1: 18.1: Market Abuse, Insider Trading, & Front-Running Enforcement
Deconstruct market manipulation rules, SEC Rule 10b-5, insider trading detection, spoofing, and front-running penalties.
1. Prohibited Market Conduct & Illegal Manipulation
Regulatory bodies strictly prohibit market abuse practices that distort price discovery.
• Insider Trading (SEC Rule 10b-5): Trading securities based on Material Non-Public Information (MNPI) in breach of a duty of trust.
• Spoofing (Dodd-Frank Prohibition): Entering non-bona fide orders with the intent to cancel them before execution to trick market participants.
★ Front-Running: Executing trades on a personal or firm account with prior knowledge of a pending client order.
2. Detection & Enforcement Surveillance
Surveillance systems analyze order book telemetry, communications, and trade timing to prosecute market abuse violations.
IV Crush Scenario Visualizer
Implied Volatility (IV) Crush is the primary account-killer for option buyers after earnings announcements. Play with the controls below to see how option premium collapses depending on Vega.
Scenario Modeling
KNOWLEDGE RECONNAISSANCE
What defines the illegal trading practice known as 'Spoofing' under Dodd-Frank regulations?
More lessons in this module
- 18.0: Global Market Regulatory Frameworks (SEC, CFTC, FINRA, ESMA, FCA)
- 18.2: Anti-Money Laundering (AML) & Know Your Customer (KYC) Protocols
- 18.3: Trade Reporting, Audit Trails, & CAT (Consolidated Audit Trail)
- 18.4: Capital Adequacy Rules, Basel III/IV, & Risk-Weighted Assets
- 18.5: Best Execution Compliance & MIFID II Unbundling Requirements
- 18.6: Cross-Border Regulatory Jurisdictions & Offshore Tax Frameworks
- 18.7: Algorithmic & HFT Compliance Governance (SEC Rule 15c3-5, MAR)
- 18.8: Regulatory Technology (RegTech) & Automated Surveillance Pipelines
Signal Desk is where you practice this on real stocks: real option chains (about 15 minutes delayed), the Trade Check and a paper-trading account that risks no real money. Join to add it, your progress tracking and PDF downloads.